Explosive Growth in XRP Demand as Bitcoin and Ethereum Fuel Crypto ETF Inflows
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Explosive Growth in XRP Demand as Bitcoin and Ethereum Fuel Crypto ETF Inflows

Market Sentiment
xrp
bitcoin
ethereum
cryptoetfs
ripple
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Summary:

  • $3.2 billion in inflows for digital asset products last week.

  • XRP price surged nearly quadrupling since Election Day.

  • Ethereum investment products saw $1 billion in inflows last week.

  • Ripple's RLUSD stablecoin set to launch, boosting XRP interest.

  • 92% of XRP inflows coming from outside the U.S.

XRP Demand Surges Amidst Record Crypto ETF Inflows

Last week, digital asset investment products saw a staggering $3.2 billion in inflows, driven by optimism surrounding Bitcoin and Ethereum ETFs, according to CoinShares data. This brings the year-to-date inflows to an astonishing $44.5 billion, marking a fourfold increase compared to any previous year.

An Unstoppable Trend

This marks the 10th consecutive week of positive flows for digital asset investment products, following an impressive $3.85 billion inflow the previous week. Bitcoin products alone accounted for 87% of the total inflows this year, with $38.5 billion pouring in. The recent surge is attributed to the launch of spot Bitcoin ETFs and the political landscape, including Donald Trump’s electoral win.

Ethereum and XRP Join the Rally

Investors are also showing interest in altcoins, with Ethereum investment products recording $1 billion in inflows last week, totaling $4.4 billion for the year. Despite a slower performance this year, Ethereum is seeing renewed interest as legislation for cryptocurrencies is anticipated next year.

In a notable development, Ripple is set to launch its U.S. dollar-pegged stablecoin, Ripple USD (RLUSD), further fueling interest in XRP. Since Election Day, XRP's price has nearly quadrupled, rising from $0.50 to $2.46. Last week, XRP investment products attracted $145 million, bringing the total year-to-date inflows to $421 million.

Regulatory Optimism

The regulatory environment is also shifting, with the incoming administration potentially paving the way for ETFs for other cryptocurrencies. WisdomTree and 21Shares are already in the race to offer XRP exposure through ETFs.

Global Inflows

Interestingly, the majority of inflows for XRP products are coming from outside the U.S., with international investors contributing $3.5 billion, representing 92% of the total inflows last week.

As the crypto market evolves, all eyes are on the impending launch of Ripple's stablecoin and the potential impacts on XRP's market position.

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